Form 3800 Details

Form 6765 is an important form for businesses to file during the tax season. This form is used to claim the research and development (R&D) tax credit, which offers businesses a valuable tax break on their expenses related to R&D activities. Knowing whether your business qualifies for this credit and understanding how to complete the form correctly are essential steps in taking advantage of this tax break. Read on for more information about the R&D tax credit and how to file Form 6765.

This article provides information regarding form 6765. You might like to browse it prior to typing in the form.

QuestionAnswer
Form NameForm 6765
Form Length2 pages
Fillable?Yes
Fillable fields47
Avg. time to fill out9 min 58 sec
Other namesform 8974, 6765 2020, form 6765, form 3800

Form Preview Example

Form 6765

Credit for Increasing Research Activities

 

OMB No. 1545-0619

 

 

 

(Rev. December 2020)

Attach to your tax return.

 

 

 

Attachment

Department of the Treasury

 

Go to WWW.IRS.GOV/FORM6765 for instructions and the latest information.

 

Sequence No. 676

Internal Revenue Service

 

 

 

 

Name(s) shown on return

 

Identifying number

 

 

 

 

Section A—Regular Credit. Skip this section and go to Section B if you are electing or previously elected (and are not revoking) the alternative simplified credit.

1

Certain amounts paid or incurred to energy consortia (see instructions) . .

. . . . . . . .

1

 

2

Basic research payments to qualified organizations (see instructions) . . .

 

2

 

 

 

3

Qualified organization base period amount

 

3

 

 

 

4

Subtract line 3 from line 2. If zero or less, enter -0-

. . . . . . . .

4

 

5Wages for qualified services (do not include wages used in figuring the work

 

opportunity credit)

5

 

 

 

 

6

Cost of supplies

6

 

 

 

 

7

Rental or lease costs of computers (see instructions)

7

 

 

 

 

8

Enter the applicable percentage of contract research expenses. See instructions

8

 

 

 

 

9

Total qualified research expenses. Add lines 5 through 8

9

 

 

 

 

10

Enter fixed-base percentage, but not more than 16% (0.16) (see instructions)

10

%

 

 

 

11

Enter average annual gross receipts. See instructions

11

 

 

 

 

12

Multiply line 11 by the percentage on line 10

12

 

 

 

 

13

Subtract line 12 from line 9. If zero or less, enter -0-

13

 

 

 

 

14

Multiply line 9 by 50% (0.50)

14

 

 

 

 

15

Enter the smaller of line 13 or line 14

. . .

. . . .

 

15

 

16

Add lines 1, 4, and 15

. . .

. . . .

 

16

 

17

Are you electing the reduced credit under section 280C? Yes

No

 

 

 

 

 

 

If “Yes,” multiply line 16 by 15.8% (0.158). If “No,” multiply line 16 by 20% (0.20) and see the

 

 

 

instructions for the statement that must be attached. Members of controlled groups or businesses

 

 

 

under common control, see instructions for the statement that must be attached

. . .

. . . .

 

17

 

Section B—Alternative Simplified Credit. Skip this section if you are completing Section A.

18

Certain amounts paid or incurred to energy consortia (see the line 1 instructions)

19

Basic research payments to qualified organizations (see the line 2 instructions)

19

 

20

Qualified organization base period amount (see the line 3 instructions) . . .

20

 

21

Subtract line 20 from line 19. If zero or less, enter -0-

22

Add lines 18 and 21

23

Multiply line 22 by 20% (0.20)

24Wages for qualified services (do not include wages used in figuring the work

 

opportunity credit)

24

25

Cost of supplies

25

26

Rental or lease costs of computers (see the line 7 instructions)

26

27Enter the applicable percentage of contract research expenses. See the line 8

instructions

27

28 Total qualified research expenses. Add lines 24 through 27

28

29Enter your total qualified research expenses for the prior 3 tax years. If you had

 

no qualified research expenses in any one of those years, skip lines 30 and 31

29

30

Divide line 29 by 6.0

30

31

Subtract line 30 from line 28. If zero or less, enter -0-

31

32Multiply line 31 by 14% (0.14). If you skipped lines 30 and 31, multiply line 28 by 6% (0.06) . . . .

33

Add lines 23 and 32

34

Are you electing the reduced credit under section 280C? Yes

No

If “Yes,” multiply line 33 by 79% (0.79). If “No,” enter the amount from line 33 and see the line 17 instructions for the statement that must be attached. Members of controlled groups or businesses under common control, see instructions for the statement that must be attached . . . . . . .

18

21

22

23

32

33

34

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 13700H

Form 6765 (Rev. 12-2020)

Form 6765 (Rev. 12-2020)

Page 2

 

 

Section C—Current Year Credit

35Enter the portion of the credit from Form 8932, line 2, that is attributable to wages that were also

 

used to figure the credit on line 17 or line 34 (whichever applies)

35

 

36

Subtract line 35 from line 17 or line 34 (whichever applies). If zero or less, enter -0-

36

 

37

Credit for increasing research activities from partnerships, S corporations, estates, and trusts . . .

37

 

38

Add lines 36 and 37

38

 

 

• Estates and trusts, go to line 39.

 

 

 

• Partnerships and S corporations not electing the payroll tax credit, stop here and report this amount on

 

 

 

Schedule K.

 

 

 

• Partnerships and S corporations electing the payroll tax credit, complete Section D and report on

 

 

 

Schedule K the amount on this line reduced by the amount on line 44.

 

 

 

• Eligible small businesses, stop here and report the credit on Form 3800, Part III, line 4i. See instructions

 

 

 

for the definition of eligible small business.

 

 

 

• Filers other than eligible small businesses, stop here and report the credit on Form 3800, Part III, line 1c.

 

 

 

Note: Qualified small business filers, other than partnerships and S corporations, electing the payroll tax

 

 

 

credit must complete Form 3800 before completing Section D.

 

 

39

Amount allocated to beneficiaries of the estate or trust (see instructions)

39

 

40Estates and trusts, subtract line 39 from line 38. For eligible small businesses, report the credit on Form 3800, Part III, line 4i. See instructions. For filers other than eligible small businesses, report the

credit on Form 3800, Part III, line 1c

40

Section D—Qualified Small Business Payroll Tax Election and Payroll Tax Credit. Skip this section if the payroll tax election does not apply. See instructions.

41 Check this box if you are a qualified small business electing the payroll tax credit. See instructions

42Enter the portion of line 36 elected as a payroll tax credit (do not enter more than $250,000). See

instructions

42

43General business credit carryforward from the current year (see instructions). Partnerships and S

corporations, skip this line and go to line 44

43

44Partnerships and S corporations, enter the smaller of line 36 or line 42. All others, enter the smallest of line 36, line 42, or line 43. Enter here and on the applicable line of Form 8974, Part 1, column (e). Members of controlled groups or businesses under common control, see instructions for the statement

that must be attached

44

 

Form 6765 (Rev. 12-2020)

How to Edit Form 6765

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Step 1: Search for the button "Get Form Here" and hit it.

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Type in the appropriate details in each segment to complete the PDF form 6765 instructions

portion of blanks in form 8974

The application will expect you to submit the Enter the applicable percentage of, Section B—Alternative Simplified, Basic research payments to, 18 Certain amounts paid or, Subtract line 20 from line 19, and Enter the applicable percentage of box.

step 2 to entering details in form 8974

Jot down any data you need within the segment Enter the applicable percentage of, 30 Divide line 29 by 6, Add lines 23 and 32 Are you, For Paperwork Reduction Act, Cat, and 34 Form 6765 (Rev.

step 3 to completing form 8974

In the paragraph Enter the portion of the credit, 35 , Section D—Qualified Small Business, and Check this box if you are a, indicate the rights and obligations.

Filling in form 8974 part 4

End up by analyzing the following fields and filling them in correspondingly: Check this box if you are a, 43 General business credit, corporations, Partnerships and S corporations, and 44 Form 6765 (Rev.

step 5 to finishing form 8974

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